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Re-structured migration program benefits the economy.

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Media Release


The Hon. Philip Ruddock MP

Minister for Immigration and Multicultural Affairs


Parliament House, Canberra ACT 2600

Telephone: (02) 6277 7860 Facsimile: (02) 6273 4144


MPS 55/98




The Mi nister for Immigration and Multicultural Affairs, Philip Ruddock, today unveiled economic modelling which demonstrates that Australians will be some $95 per person better off following Coalition Government changes to Australia’s migration program.


The report, commissioned by the Department of Immigration and Multicultural Affairs, compares the economic impact of Australia’s 1995-96 migrant intake with the planned 1997-98 intake.


Undertaken by private consulting firm Econtech, the analysis confirms the per capita economic benefits of a more skilled Migration Program.


Other findings of the report include the following effects on demographic outcomes in the Year 2007-08 (assuming a continuation of the 1997-98 intake):


* a population loss of about 1.24% due to the lower size of the program;

* a younger population mainly because of capping of the parents category;

* a higher underlying labour force participation rate;

* a rise in migrant capital transfers; and

* a higher skill level in the overall workforce.


The report found that “although a reduction in the size of the migration program would ordinarily lead to an older population, lower migrant transfers, and a lower skilled workforce, the changes in the nature of the migration program mean that the new migration policy has precisely the opposite effects”.


The report also notes that “it may have been difficult to achieve this improvement in the economic quality of the intake, if the size of the intake had been maintained at its former level”.


Mr Ruddock said the report supports the Government’s commitment to delivering a Migration Program with a proper emphasis on selecting migrants with the necessary skills and capital to help the Australian economy grow.


“This data confirms that the Government’s measures have been successful to date, however, there is potential for further gains if selection policies and procedures can achieve further improvements in the employability of skilled migrants.


“Such improvements will be the focus of changes to the Independent and Skilled Australian Linked categories I will be announcing shortly”.



Tuesday, 26 May 1998


Media Inquiries: Brad Robinson (02) 6277 7860 or 0419 278 715.